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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
INDUSTRIALS SECTOR
- The shares of optical sensor manufacturer AMS-Osram are nearly 5% higher today on the headlines that Bernstein has upgraded their equity outlook on the company, following similar moves from Barclays and Jefferies.
- BBG quotes from the Bernstein analysts are relevant to credit investors - Bernstein cites the completion of the firm’s refinancing plan and the covering of upcoming maturities as easing liquidity risk while showing the intent of the new management team.
- Credit is little moved on the day though we note bonds streaming with MoM moves of +€1.30 at the short-end and up to +€3.32 at the long-end.
- AMS-Osram’s rating was affirmed at BB-[N] by S&P in November (now B2[S]/BB-[N]/BB-[S]) with refinancing plan for a €800mn rights issue and €800mn issuance offset by a negative outlook for revenue, capex and ultimately their cash flow.
- In mid-December, they announced the completion of their refinancing plan, having completed the rights issue and issuance (of €1bn from the previously planned €800mn) along with asset sales of €450mn.
- They also announced a “Re-establish-the-Base” programme aimed at attaining an IG rating by 2026 - we feel the successful implementation of the refinancing programme speaks to management ability and commitment on the debt front.
- The company achieved a pro-forma adj-ND/EBITDA ratio of 2.1x based on Q323 figures (table from results below) with guidance for positive FCF in FY24 though with broader performance tilted towards H2. FY23 results are due on 07 February.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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